Mine workers support local processing of minerals
The Ghana Mineworkers’ Union (GMWU) has welcomed the announcement by President John Mahama that Ghana is seeking international co-operation to venture into the processing of mineral resources.
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The union agreed with the President that over the years, over-reliance on primary production had denied the country the expected benefits from mining.
In a statement signed by the General Secretary, Mr Prince William Ankrah, the GMWU said the non-processing of mineral resources created the impression that the country could only generate money from raw gold, bauxite and other minerals.
“The union, therefore, supports the President’s programme for secondary production for value addition to be actualised as soon as practicable. Arguably, this can become a major special presidential initiative of our generation,” it said.
Determination & commitment
The statement said moving into the processing of mineral resources required political determination and conviction, adding, “We have no doubt the President has such conviction.”
According to the statement, the gold refinery notion had died over the decades, “especially when one looks at how Kwame Nkrumah’s vision for the establishment of a gold refinery at Tarkwa could not be actualised. It is in this light that the GMWU thinks that all interest groups should give their maximum support to enable the President to bring renewed energy, as well as new thinking into the structure of the mining sector,” it said.
Legal provision
The statement also said best practice elsewhere, such as Botswana, had shown that the best way to derive maximum returns from mining was through the processing of mineral resources.
It called for a legal provision that would ensure that at least 20 per cent of raw gold produced in the country was retained for processing.
“It is sad that countries without natural mineral resources like those of Ghana can boast amazing factories processing gold and diamond into jewellery,” the statement noted, citing Thailand and Dubai.
It also indicated that putting up an aluminium smelting factory in Ghana for bauxite, for instance, would be immensely helpful to the country, since it would increase revenue and promote a vibrant manufacturing sector. The statement said similar processing factories could be established for diamond and other mineral resources.
“Cumulatively, this can have a great job opening for our struggling economy and help boost the economic activities in the host communities,” it said.
Better investment negotiation
The statement stressed the need for better investment negotiation based on good research to derive the maximum benefit from the mining sector because “the investor will not come as a benevolent person.”
It added that corporate greed had now become the norm, however unethical, and so “there is the need for adequate and detailed analytical preparations during such business negotiations”.
“Our governments across the continent need to take a bold position on issues of investments with multinational companies and go in for a balanced deal.